Independent Power Producers

Independent Power Producers (IPPs) are private electric facilities, such as wind energy producers, who can generate electric power for sale to a utility, central government buyer and end users and/or are capable of feeding excess energy into the grid system to achieve energy security in South Africa.

According to the 20-year Integrated Resource Plan (IRP2010), about 42% of electricity generated in South Africa is required to come from renewable resources.

In April 2015 The Department of Energy announced the Preferred Bidders in respect of the 4th Bid Submission Phase (BW4) selected to contribute to South Africa’s energy mix, and the allocation of 676 MW, and then an additional 687 MW was added in bid window 4, for a total of just over 3,000 MW for all 4 bid windows, 2,000 MW of which is planned to be generated by wind power, with the balance from concentrated solar power, Solar PV power and other renewable sources.

The South African Wind Energy Association (SAWEA) has lodged an official complaint with the National Energy Regulator of South Africa (NERSA) over Eskom’s failure to comply with ministerial determinations. The complaint relates to Eskom’s public refusal to enter into power purchase agreements… A formal investigation has commenced “alleging that Eskom is in breach of its license conditions regarding the delay or refusal to sign certain Power Purchase Agreements (PPAs)”.